No doubt, readers of this blog are paying attention to what is going on in the world, and there isn’t much for me to add. Still, I can’t help but add a few comments.
1. Selling is accelerating on building volume after Tuesday’s successful defense of the 1275 SPX level.
2. 50 day EMA is rolling over for the first time since last summer
3. AAPL shares saw the largest one day drop since the “flash crash”
I am down to ~ 10% equity allocation, having made large shifts to cash in late January and mid February. My focus at this point is to look for support to develop and put that cash to work. However, the pace of events around the globe makes for a treacherous market environment.
Once again, while the attention is on the the terrible tragedy in Japan, and my heart truly goes out to the lovely Japanese people, the events in the Middle East – and Bahrain in particular – are very worrisome. The only place to be now, in my view, is in the safety of cash. This is no time to be a hero in the markets. Please be careful!